Who We Are

October 10, 2022

Who We Are

Tenarries Management Consulting Group (after this TMCG) is a global management consulting firm with the overarching goal of enabling the transformation of forward-thinking small-to-midsized enterprises (SMEs) into potentially “formidable global challengers”. We help them develop and implement winning international business and competitive strategies to goose revenue, the bottom line, and retain/enhance global competitiveness. The bulk of the universe of U.S. SMEs conduct business exclusively in the domestic economy or obtain less than 10% of their annual revenues from global markets. Only 1% of small companies exported overseas in 2017 (SBA, n.d.). In contrast, many larger U.S. multinational entities (MNEs) derive 40% or more of global sales and profits from international markets. Interestingly, most SMEs desire to hike their annual sales but do/may not possess the expertise needed to sell into international markets. Statista projects global GDP to expand 6.03% in 2021, 4.42%, and 3.5% in 2022 and 2023, respectively, then taper off to circa 3.3% from 2024 through 2026. Why should SMEs care? Almost all for-profit businesses should care about globalizing their operations and/or deriving a decent portion of their revenue, profit, cash flow, etc from the non-domestic market. New markets offer valuable opportunities beyond increased sales, cost reduction, sourcing raw materials, to mention three driving forces. TMCG asserts that equally important to goosing revenue, another primary driver for venturing into new global markets is the opportunity to hike an organization’s global competitiveness. The U.S. economy remained the world’s largest in 2020 (World Bank, 2021), and it accounted for circa 25% of global GDP ($84.7tril at current prices). In 2020, emerging and developing Asia (China, India, and ASEAN-5) accounted for about 24% of the $84.7tril global GDP (World Bank, 2021). IMF projects U.S. GDP growth of circa 7% and 4.9% in 2021 and 2022% respectively, emerging and developing Asia economies are forecast to grow 6.3% and 5.2% in 2021 and 2022, respectively. To contextualize the significance of these emerging and developing Asia GDP data, one needs to bring into the picture the size/scale of the middle-class population in these countries. China’s middle-class population ballooned to 700 million in 2020 from 80 million in 2002 (Statista, 2021). Thus, China’s middle class is more than twice the entire 330mil U.S. population and perhaps 4.2X more significant than the U.S. middle-class population of 165 mil (OECD, 2019). Now, add the middle-class of India and ASEAN-5. Are there desirable potential sales opportunities available to U.S. SMEs that offer the “right” product(s)/service(s) positioned correctly for those markets? Of course, they may not command the relatively higher U.S. domestic price points (or margins). However, well-managed businesses can make up for the margin erosion with higher sales volume. The international business savvy U.S. global multinational companies understand and exploit these global business opportunities to obtain 40% or more of their global sales from international markets? Well, some SMEs may argue that selling domestically in the U.S. is a “relatively easy” task, a very large economy with affluent consumers and there are negligible international business risks ala forex risks, political risks, economic risks, commercial risks, etc. But there are tools for mitigating global business risks. Further, as a forward-thinking SME seeking long-run survival in the 21st century’s hyper-competitive global economy, why not diversify your customer base, annual revenue, and profit by venturing outside the domestic U.S. market? After all, 96% of the 7.8 billion global population (U.S. Census, 2021) who live outside the U.S. are potential customers not only for U.S. global multinationals but also for SMEs. Asia’s share of global GDP growth is forecast to surpass the developed world’s (U.S., Europe, Japan, etc) during the first half of the 21st century. Many research reports (OECD, World Bank, etc) predict that the 21st century is the Asian century. As the saying goes in international business, “head east because that is where the growth is” or stated differently, “Why not go out on a limb? that is where all the Fruit is.”